Korean Air submits Asiana Airlines business combination report to FTC [이슈+]
Korean Air’s acquisition of Asiana Airlines, which has crossed the ninth ridge, has reached the Fair Trade Commission’s corporate merger review, which is the’last gateway’. Photo = Yonhap News
Korean Air crosses the ‘9th section ridge’(32,750 +7.55%)Asiana Airlines(4,210 0.00%) The acquisition process has reached the’final gateway’, the Fair Trade Commission’s business combination review.
The FTC announced on the 14th that Korean Air has submitted a business combination report related to the acquisition of Asiana Airlines shares.
If it passes the FTC’s business combination review, Korean Air will in fact overcome all of the factors that were considered obstacles to the acquisition of Asiana Airlines.
Korean Air submitted a report to eight foreign competition authorities, including the US, Japan, China, and the European Union, along with the FTC.
The FTC and overseas authorities will decide whether to approve the monopoly factor based on the business combination report submitted by Korean Air.
The key is whether the FTC will judge Asiana Airlines as an unrecoverable company. In light of the previous case of Jeju Air’s approval by the Fair Trade Commission for the merger and acquisition (M&A) of Eastar Jet, if Asiana Airlines also accepts it as a company that cannot be rehabilitated, it is expected that the merger will be approved in accordance with the Fair Trade Act and Enforcement Decree.
Korean Air’s acquisition of Asiana Airlines, which has crossed the ninth ridge, has reached the Fair Trade Commission’s corporate merger review, which is the’last gateway’. Photo = News 1
The FTC judged whether Asiana Airlines satisfies all the remaining requirements that it would be difficult to use the company’s production facilities without this merger, and that it would be difficult for other business combinations with less competition restrictions to be achieved without this merger. do.
The airline industry is putting emphasis on the low possibility of another airline’s acquisition of Asiana Airlines, considering the fall in passenger demand caused by the aftermath of the novel coronavirus infection (Corona 19). However, there are observations that the judgment on whether or not an M&A with less competition restrictions can be achieved may be divided.
As the National Pension Service has expressed its de facto objection to Korean Air’s acquisition of Asiana Airlines in relation to Korean Air’s paid-in capital increase, the market is drawing attention to the judgment of the Fair Trade Commission. The FTC’s business combination review period is 30 days from the date of notification. However, if necessary, it can be extended up to 90 days.
In addition to the FTC, there are rare cases of disapproval in the examination of business combinations by foreign authorities.
Reporter Oh Jung-min Hankyung.com [email protected]
Article reports and press releases [email protected]
Ⓒ Hankyung.com prohibits unauthorized reproduction and redistribution